121 infrastructure projects to continue

31 Mar 2019 / 21:53 H.

PETALING JAYA: A total of 121 infrastructure projects nationwide offered through direct negotiations and limited tender by the previous Barisan Nasional government at over RM13.9 billion will go on following cost cost renegotiations by the Pakatan Harapan government.

Finance Minister Lim Guan Eng said the projects will proceed, with the projects to cost only RM13.1 billion, giving the federal government a total savings of almost RM806 million.

“For the 121 projects that were awarded through limited tender and direct negotiations that has been issued with a Letter of Acceptance, additional agreements will be finalised after the price was renegotiated as a rationalisation effort, reducing pressure to the government’s fiscal position.”

“Other projects that have yet to be issued the Letter of Acceptance will be launched through open tender,“ he said in a statement today.

Lim said the move to review projects that were offered via limited tender and direct negotiation with the previous government, had been among the measures announced by the Finance Ministry last year.

However, he stressed that the 121 projects do not include mega-projects such as the LRT3 and MRT, which were initially priced at RM31.65 billion and RM39.35 billion respectively.

“These two projects combined has been reduced to RM16.63 billion and RM30.53 billion respectively, which saves RM23.84 billion in total.”

Lim said with the latest developments, the Finance Ministry is confident the procurement implementation through open tender will lead to a reduction in costs and achieve the best interest value to the government and the people.

Quoting an example, he said a contract offered to a G1 grade contractor (formerly known as ‘F class’ contractor) would still be the same, except it will be conducted openly and competitively among G1 grade contractors.

“It is not like before, which is through direct negotiations or having the need to get a signature of agreement from the head of a political party,“ he added.

“The Finance Ministry will take comprehensive initiatives to ensure government procurement exercises will be in line with the principles of competency, accountability and transparency,“ he added.

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